November 9, 2010 MinutesCITY OF DENTON CITY COUNCIL MINUTES
November 9, 2010
After determining that a quorum was present, the City Council convened in a 2" d Tuesday
Session on Tuesday, November 9, 2010 at 4:00 p.m. in the Council Work Session Room at City
Hall.
PRESENT: Council Member King, Council Member Heggins, Council Member Gregory,
Council Member Engelbrecht, Mayor Burroughs, Council Member Watts, and
Mayor Pro Tem Kamp.
ABSENT: None.
1. Receive a report, hold a discussion and give staff direction regarding co-sponsorship for
special events.
Emerson Vorel, Director of Parks and Recreation, stated that staff was seeking direction on a
process to determine what events would receive co-sponsorship from the City and at what level.
Not included in this discussion would be department athletic leagues by the Parks Department,
the Midnight Basketball event, and similar events. The discussion would apply to Denton-based
non-profit organizations asking to use city resources to offset some or their entire event.
Currently the City did not have a policy in place for co-sponsorship or a procedure for Council to
review those events. Staff had researched how other cities handled this process. Option 1 would
be to not sponsor events which seemed not to be the direction Council wanted to go. Option 2
would be to establish a special events fund and an annual application process. Council would
determine the total allocation for the year and a standard application to determine funding for
events. Approximately $250,000 would be needed to cover events currently being co-sponsored.
Option 3, if no special events fund was established, would be to use the same application and
review process to authorize departments to participate in events and to identify a specific level of
participation. That would provide a formal standard review of an event and keep track of costs.
Option 4 was to leave the process as it currently was and address each co-sponsorship request on
a case by case basis. He listed the nine largest events co-sponsored by the City. The objective
was to have council provide direction on how to proceed.
City Manager Campbell stated that the nine events listed were not the only events co-sponsored
by the City.
Vorel replied correct that there were many more that were co-sponsored.
City Manager Campbell stated a policy recommendation would have to include the type of
policy, a discussion on which events to include, what amount to provide, when and how
contributions would be paid whether before or after event, etc.
Mayor Burroughs suggested establishing an evaluation spread sheet that would list the
departments involved, what departmental resources were used, what was contributed by topics so
there would be areas of commitment listed and then determined whether to allocate by dollar
amount. There would be a template to plug in any future requests as events came.
Vorel stated that a very small portion of the co-sponsorship involved supplies. The largest
category was labor whether from the Police Department or Parks; and the other large request was
for relief from park building rental fees.
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November 9, 2010
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Mayor Burroughs assumed that each department kept track of the resources it used.
Vorel replied correct.
Bryan Langley, Chief Financial Officer, stated that there was a summary of everything done in
the city and a detail of each department's resources used.
Mayor Burroughs asked if the host organization received that information.
Vorel replied they did not.
Mayor Burroughs felt it might be helpful to give them that information so that people knew how
much the city did for citizens.
Council Member Gregory stated that he would like the more detailed information. He
questioned how big a task it would be to put it in a separate category and consider at budget time
City Manager Campbell stated that the problem was not planning for at budget time, it was the
events as they came up during the year. There was no formal process of how much the city
would provide and it was not planned. There was no consistent decision making and the process
would be easier and more consistent with formal criteria for the organizations to meet in order to
receive sponsorship. Staff could develop criteria and riles to discuss during the budget process.
There was a need to be consistent for all events.
Mayor Pro Tem Kamp felt that there was a need for a policy and guidelines. Fire and Police
were already being charged to the events but maybe not to all departments.
Council Member Heggins questioned what would happen if an event did not want to pay for
police services. She knew of some events where police services were not needed.
City Manager Campbell stated that would be part of the criteria for an event due to the number of
people attending, whether an ambulance was needed, etc.
Council Member Watts stated that there currently were some events with outstanding invoices.
He felt part of the criteria should be a Denton based event. He wanted to avoid situations where
decisions were being made after the event. It was important in the process to establish an
amount, whether hard dollars or lost revenue, as the funding was important. Some events were
already funded with HOT funds. He would consider Option 2 as the City was already doing part
of that option.
Council Member King stated that he liked Option 3 as it let events build momentum before
asking for help.
Council Member Engelbrecht stated that there had been no discussion about establishing goals,
what the organization was trying to accomplish with its event. He suggested first establishing
goals and have a weighted system in the application process which would help with the
evaluation. Another issue was new events versus on-going events. Some new events brought in
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November 9, 2010
Page 3
many people to town so it would be important to not dismiss new events. He questioned if there
were times when donations of time were asked for during events.
Roy Minter, Police Chief, stated that one event asked for donations of officer's time. Sometimes
they received responses from the officers and sometimes they did not. It depended on how large
the event was and how much it would take from the off-duty officer's time. That information
could be used to help assess an event.
Mayor Burroughs suggested staff develop a process and criteria for goals.
City Manager Campbell stated that a goal to include might be that the intent was to help the
event start up and build up and perhaps have a time limit on providing the support.
Sustainability should be a part of the funding.
2. Receive a report, hold a discussion, and give staff direction regarding projects and position
statements to be included in Denton's congressional priority project requests for the 112th
Congress.
John Cabrales, Public Information/Intergovernmental Relations Officer, stated that staff was
asking for feedback on the congressional priority projects requests. Since 2003, Denton had
submitted priority project requests to the city's congressional delegation for discretionary
funding based on the needs of the community and the appropriateness for federal funds.
Recommended projects for the next Congress included (1) Airport operating safety
enhancements, (2) Airport parallel runway constriction, (3) Downtown development
improvements, and (4) DME/AMI Smart grid project. Airport operating safety enhancements
included more ramp space and associated lighting. The Airport parallel runway fit in with the
long term plan for airport. In addition to an extension of the existing runway, the request would
include an environmental assessment, engineering design and constriction. The Downtown
development improvement included the Hickory Street Corridor to make a more walkable and
pedestrian friendly area. The project included street work, sidewalk enhancements, engineering
and surveying.
Mayor Burroughs asked about the timing to find out about the $500,000 for Downtown and
when the City expected to receive notification.
Cabrales stated that it should be before the end of the year. He would receive more information
next week from the City's congressional consultants. The Smart grid project involved in-home
displays, and mesh-based thermostats. Other core local government programs that might not
receive funding included the Energy Efficiency and Conservation Block Grant, Community
Development Block Grant, the HOME program, local law enforcement grants, firefighter
assistance grants and metropolitan medical response systems. Statements were in place noting
the city's desire to continue funding for these core projects. With surface transportation issues,
bicycle accommodations would be a priority for the proposed SAFETEA-LU program. Another
project would be the I35-E expansion project funding.
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Council Member Watts questioned an issue regarding freight rail such as coal transportation.
Right now TMPA had to use one rail and there may be some proposed legislation for this type of
issue.
Cabrales continued with telecommunications in terms of general communications laws and
policy for rights-of-way management, fees and revenues, zoning authority, and PEG channels.
Public safety communications would also be included.
Mayor Burroughs suggested indicating how much funding the city was providing for the projects
as some projects the city might be asking for only $1 million when the total project was $9
million.
Cabrales stated that the City always asked for an 80/20 match but the figures could be put
somewhere in the documents.
Council Member Engelbrecht felt it would be helpful to show that the city had the funding for
the city's 20%
Cabrales stated that it would certainly help with the city's position.
3. Receive a report, hold a discussion and give staff direction regarding the 2011 State
Legislative Program of the City of Denton, for the 82nd Texas Legislature.
John Cabrales, Public Information/Intergovernmental Relations Officer, stated that the 82nd
legislature would be dealing with such issues as the critical state budget deficit, sunset review of
key agencies and redistricting. The City's general legislative policy statement included a
statement of preservation, a statement of support, the formation of coalitions and a statement of
goals. Denton's highest legislative priorities included preserving local budgeting authority and
revenue sources; preserving local control of land use planning and zoning; and funding
authorization for the 1315-E project.
Revenue and taxation would be looked at in terms of mandatory real estate price disclosure, sales
tax holiday expansions, textbook sales tax holiday and municipal impact fees. Land use and
resources would deal with municipal authority in the ETJ, relocation of utility lines in a timely
manner, special district creation in the ETJ, annexation authority, development fees, exactions
and permits. Utility issues would look at preserving Congestion Revenue Rights and preserving
self-regulation of municipal electric utilities. Transportation issues would center on Fund Six
diversions, gas tax index, regional mobility authority and DCTA support. Public Safety would
deal with full reimbursement of costs during emergency evaluation and shelter operations and
red light cameras. General Government would center on environmental standards, collective
bargaining, community housing development organizations, and support for UNT/TWU/DISD.
Council Member Watts asked if this was the list of items that the legislative consultants were
going to advocate for or against.
Cabrales stated that they were key issues to have on radar and was not the total list.
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4. Receive a report, hold a discussion and give staff direction regarding the Airport Business
Plan.
Quentin Hix, Airport Manager, reviewed the Airport Business Plan Development history. Major
business plan edits included (1) enterprise fund operation implemented with the 2010-2011
airport budget, (2) modified reference to airport governance stricture, (3) updated Airport
organization chart, and (4) modified baseline financial pro forma. Issues pending council action
included (1) specific Airport revenue generating development projects and (2) reversion clause
implementation terms and conditions.
Mayor Burroughs noted that other cities had a reversionary clause in their leases but Denton has
had them for a long time. The real issue was at the end of the lease and whether or not the clause
actually made the reversion or just extended the lease.
Hix stated that part of the agenda backup materials contained a spreadsheet of the survey asking
that question. Staff found ones that did revert and assumed the property at the end of the lease
and also some that did not revert plus others that assumed ownership of the improvement of the
property. It was not a well defined process for assuming ownership on the property.
Council Member King questioned if the city with the harshest language found it detrimental to
that city.
Hix replied that the Council would be presented with that situation in the next three months. At
that time, a lease would be expiring and the reversion clause would be applicable.
Mayor Burroughs stated that E4 on the Executive Summary spoke of "surface" gas leases.
Hix stated that each gas well had a separate surface lease with Range Resources which was the
actual well site.
Council Member Gregory asked if the pro forma on page 36 reflected that statement to include
the surface leases.
Hix stated that it was a separate line item.
Mayor Burroughs stated that E5 in the Executive Summary noted priority listings and asked how
much emphasis was placed on which priority.
Hix stated that the priorities would be established more as a budget impact.
Council Member Gregory asked for more details on the reversionary clause and the impact on
the city if it took ownership. He questioned what kind of impact would there be with the city
taking ownership and what would be the impact on the DISD.
Mayor Burroughs stated that if the hanger was leased out to "profit" entities, it would be taxed.
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November 9, 2010
Page 6
Mayor Pro Tem Kamp questioned what would happen to the Airport Advisory Board when the
change was made to the Enterprise fund. She questioned if there were suggestions on how to
move to a governance board and what it would look like.
Council Member Gregory asked how rates would be set if there was no rate setting board.
Hix stated that the Master Plan assumed that it would be a staff function. When a rate schedule
was adjusted, it would go back to Council.
Council Member Gregory suggested stating that it was a staff function in the plan.
Council Member Watts stated that the business plan, assumed or presumed staff set the rates and
should be specifically stated in the plan as it was important to list who set the rates. The business
plan had many recommendations for alternative sources of funding. He questioned if the
development of hangers was part of that or were other alternative sources build into the plan.
Hix stated that it did not consider those alternatives.
Council Member Watts questioned the rise and drop in the maintenance and repair line item.
Hix stated that there was a specific spreadsheet for specific maintenance items which caused the
spikes and declines in the projections. Council had discussions on specific line items in the pro
forma.
Council Member Engelbrecht requested information on what other airports were doing with
enterprise funds.
Mayor Pro Tem Kamp stated that the scope of that search might have to be narrowed or there
would be too much difference in information
City Manager Campbell stated that staff would identify options and alternatives for the different
types of funding.
Following the completion of the 2" d Tuesday session, the Council convened into a Closed
Session to discuss the following:
1. Closed Meeting:
A. Deliberations Regarding Real Property - Under Texas Government Code Section
551.072 and Deliberations regarding Economic Development Negotiations - Under
Texas Government Code Section 551.087.
1. Receive a report, hold a discussion and give staff direction regarding the
value of real property located on the Denton Municipal Airport, specifically
the area northeast of the Airport Terminal parking lot and the lease of said
real property to NE Development and Constriction for the constriction and
operation of a restaurant where deliberation in an open meeting would have
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November 9, 2010
Page 7
a detrimental effect on the position of the City of Denton in negotiations
with a third person. This discussion shall include commercial or financial
information the City Council has received from company which the City
Council seeks to have locate, stay, or expand in or near the territory of the
city, and with which the city council is conducting economic development
negotiations; including the offer of financial or other incentives.
With no further business, the meeting was adjourned.
MARK A. BURROUGHS
MAYOR
CITY OF DENTON, TEXAS
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS